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Commercial demand, export sale support soybeans

Futures Markets copy

Soybeans were higher on short covering and commercial buying. Unknown destinations bought 190,000 tons of 2015/16 U.S. beans Wednesday morning. Longer term demand is uncertain, but U.S. beans are currently cheaper than other origins. Allendale reports 66% of Brazil’s soybean crop is planted, compared to 74% a year ago and the five year average of 78%. Farmers in Argentina continue to hold back grain and oilseed sales, waiting for more action on export tariffs and quotas from the new government. The weekly export sales report is delayed until Friday. Soybean meal and oil were higher, following beans.

Corn was higher on short covering and technical buying. Export demand has been slow, but domestic feed and ethanol demand are solid. There will be no overnight business Wednesday and Thursday, and commodities close at just after Noon Central on Friday. According to Allendale, 83% of Brazil’s first corn crop is planted, compared to 84% a year ago. Ethanol futures were lower. Ethanol production for the week ending November 20th averaged 1.008 million barrels per day, compared to 975,000 a day the previous week.

The wheat complex was mixed. The winter crop is heading towards dormancy in pretty good shape. Aside from the potential for flash flooding in some winter wheat growing areas, this week’s precipitation will be beneficial for the crop. A winter storm watch is also in effect for parts of the U.S. Plains. Egypt is tendering for an unspecified amount of milling wheat.

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